Do not Shoot the Sales Group
Profits is down. Sales are slowing. The CEO looks up from business plan and realizes that the business won’t meet experts’ expectations. Focusing on the organization’s sales leader, the phase is set for compromising a scapegoat.
Upon who else should the axe fall when the sales organization misses out on earnings targets? After all, aren’t sales and revenue the duty of the sales leader? The answer may be as quickly forgotten as it is obvious.
To one degree or another everybody in a company impacts the income generating process. The strategic strategy of the board of directors and the CEO provides the general strategy for earnings generation. The marketing department provides crucial market and psychographic customer or client info on which the sales department relies in formulating market and account methods. Manufacturing, finance, legal, client service and all other departments facilitate or constrain the process of creating earnings, each in their own strange way.
The sales company’s impact in enterprise profits generation is con-centrated in the sales pipeline. Recognizing authentic sales chances, managing those chances through the sales pipeline up until they produce revenue, and then handling customer or client relationships are the primary responsibilities of the sales and sales management groups. Hardly ever, if ever, does the sales company manage the resources of manufacturing, marketing, finance, legal and customer service.
The photo most companies present to the world show the sales company “out there,” in front of customers and clients and in front of the remainder of the business’s departments. Even marketing, the very first cousin of sales, is most of the time as detached from sales as are the other departments. The sales group leads the company charge, and the other departments take up rear support positions, providing tangible and intangible assistance.
Earnings generation is a cross functional, company-wide process that includes every department and all workers in the organization. The CEO and the Board of Directors set business strategy and everyone else in the organization carries out that technique. We have actually never observed a situation where the sales organization is in chaos while all the other company sections are humming together with little or no friction. In those uncommon cases where the failure or underperformance of an enterprise’s profits generation procedure lies within the sales company, the proper sales executives, managers and sales specialists need to be held liable and must suffer the requisite consequences. Before CEO’s shoot their sales teams, nevertheless, they might want to take a vital look at the entire profits generation procedure and how each business sector adds to or detracts from the success of the process. Like America’s preferred psychologist, Dr. Phil, would recommend: Every department in a company either contributes to the company’s profits generation procedure or contaminates it.